Westag & Getalit AG reported a moderate reduction in sales revenues in the first quarter of 2015. During the first three months of the year, revenues declined by 2.0% to € 55.8 million (previous year: € 57.0 million). Export sales showed a positive trend in spite of the continued difficult economic environment in the company’s individual markets. Exports picked up by 5.5% to € 11.2 million in the reporting period (previous year: € 10.6 million). Consequently, the export share climbed to 20.0% (previous year: 18.6%).

The Doors/Frames Division generated revenues of € 28.9 million in the first quarter, down by 3.1% on the good prior year quarter (previous year: € 29.8 million).

Sales revenues in the Surfaces/Elements Division remain unchanged from the previous year at € 25.4 million.

Despite the moderate decline in sales revenues, earnings before taxes increased thanks to the improved cost structure. At € 2.5 million, earnings were up by 13.6% on the previous year’s € 2.2 million. Accordingly, net profit for the period also showed a positive trend and climbed from € 1.5 million in the previous year to € 1.7 million. Net profit for the period per share amounted to € 0.29 for the ordinary shares and to € 0.35 for the preference shares.

The company plans to invest a good € 10 million in the current fiscal year, with the main focus on selective capacity expansions in the context of the modernisation strategy, which will be pushed ahead further this year. The Doors/Frames Division will not only extend its production halls but also plans to start a multi-year investment project for a new frames production line. In addition, the Surface/Elements Division intends to invest in a new processing plant for cut-to-size worktops at the Wadersloh plant. With these investments, the company continues to respond to current market requirements.

As of March 31, 2015, the headcount rose to 1,301 (previous year: 1,279). As outlined in the 2014 Annual Report, this increase is attributable to the fact that permanent employment contracts were signed with previously temporary workers.

Outlook
After the first few months of 2015, the macroeconomic background suggests that the market environment will remain differentiated. The good situation in the housing construction sector and the slowly recovering public and commercial construction sector give cause for optimism. In spite of the good export trend in the past months, the projections for the export business remain subdued for the time being. The investment projects realised in the past have laid the basis for new areas of growth in Germany and abroad, which will lead to growing revenues in the context of a marketing offensive.

The earnings forecast for 2015 is subject not only to sales revenues but also to raw materials prices, which are influenced, among other things, by oil-based chemicals. Assuming a stable economic trend in the further course of the year, in conjunction with the planned distribution offensive and strict cost management, the company’s management believes, however, that the conditions are in place for future earnings growth. Against this background, the Management Board continues to project a moderate increase in sales revenues and earnings for 2015.